Inflation might be putting many Americans in a pinch, but their pets are none the wiser. American pets are living the good life, with their owners upping spending through the COVID-19 pandemic and showing no signs of slowing down.¹

Empower Personal Dashboard^TM data shows that, on average, Americans spent $318 a month on their pets in 2024 — that’s more than monthly expenses on utilities ($260), personal care ($258), or gas ($203). Pet spending is surging, even as the cost of essential items like shelter, food, medical care, and vehicles all rose month-over-month in December, per the Consumer Price Index (CPI).² Empower research reveals that 71% of pet owners want to spoil their pets, while 1 in 3 say they spend more on their furry companions than on themselves.

Pet prices unleashed

Pet-related inflation has outpaced overall inflation over the last 5 years. According to the Bureau of Labor Statistics, prices for pets, pet products, and services have surged 24.5% in the last five years, with pet services like grooming, boarding, and visiting the vet increasing 35.5% since December 2019.³  The latest U.S. Census Bureau data shows that revenue in pet care services more than quadrupled from 2004 to 2021, reaching $10.7 billion in 2021.⁴

Pet-related inflation vs overall inflation over the past 5 years

The heightened costs are affecting more people than ever before: Two-thirds of American households own at least one pet, up from 56% in 1988, according to the American Pet Products Association.⁵

With the rise of pet ownership, increased spending, and the trend of seeing pets as family, the pet services industry — particularly daycare — is seeing massive growth. The U.S. pet daycare market is expected to reach $2.85 billion by 2030, growing 8.78% from 2025 to 2030.⁶ Amid the growth of pet-sitting apps like Rover, doggie daycares are stepping up their game to grab dog owners’ attention: From doggie school buses to enrichment activities, spa days, and playoff football tailgates, there’s no shortage of creative perks on offer.

Spoiled “fur” choice

As pet product prices have increased, so too have the options for pet parents looking to spoil their fur babies. Whether it’s human-grade dog food (The Farmer’s Dog, $40 to $500 per month), pet shampoo from a celebrity hair stylist (Ouai, $32), a faux leather car seat (Funny Fuzzy, $168), or an orthopedic bed (Barney Bed, $220), catering to dogs is big business.

Mars, a company best known for its chocolate bars, made two-thirds of its revenue last year from pet products and clinics, while Nestlé and Colgate also make around a fifth of their revenue from their pet divisions.⁷

Brands are increasingly expanding their customer base to include four-legged friends. Recently, Crocs partnered with Bark — best known for its monthly subscription service BarkBox (and, more recently, its airline Bark Air) — to launch pet Crocs for $49.99. The highly-requested product sold out on the day of its release and has already hit the resale market, in some cases listed at more than a 100% markup.⁸

Pet owners undeterred by rising costs

Despite the rising costs of pet care, many pet owners continue to prioritize spending on their pets’ well-being. According to Empower research, more than a third of Americans (35%) say their pets motivate them to work harder and seek higher pay — and it’s only up from here: 42% of pet owners say the more money they make, the more they spend on their beloved companions.